Understanding the Elusive Black Box of Dynamic Capabilities

Bibliographic Data

ID23364255
AuthorsPaul A Pavlou (0000-0002-8830-5727, Temple University, corresponding author), Omar A El Sawy (University of Southern California, corresponding author)
Year2011
Volume42
Issue1
Pages239-273
Publication date2011-02-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueDecision Sciences (JOURNAL)
Journal identifiersISSN: 0011-7315 • E-ISSN: 1540-5915
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1540-5915.2010.00287.x
OpenAlexW1957002264
LanguageEN
Citations received57
References cited88

A major challenge for managers in turbulent environments is to make sound decisions quickly. Dynamic capabilities have been proposed as a means for addressing turbulent environments by helping managers extend, modify, and reconfigure existing operational capabilities into new ones that better match the environment. However, because dynamic capabilities have been viewed as an elusive black box, it is difficult for managers to make sound decisions in turbulent environments if they cannot effectively measure dynamic capabilities. Therefore, we first seek to propose a measurable model of dynamic capabilities by conceptualizing, operationalizing, and measuring dynamic capabilities. Specifically, drawing upon the dynamic capabilities literature, we identify a set of capabilities—sensing the environment, learning, coordinating, and integrating—that help reconfigure existing operational capabilities into new ones that better match the environment. Second, we propose a structural model where dynamic capabilities influence performance by reconfiguring existing operational capabilities in the context of new product development (NPD). Data from 180 NPD units support both the measurable model of dynamic capabilities and also the structural model by which dynamic capabilities influence performance in NPD by reconfiguring operational capabilities, particularly in higher levels of environmental turbulence. The study's implications for managerial decision making in turbulent environments by capturing the elusive black box of dynamic capabilities are discussed.

Black box · Context (archaeology) · Dynamic Capabilities · Dynamic decision-making · Knowledge management · Operationalization · Set (abstract data type) · Systems engineering · Artificial Intelligence · Computer Science · Engineering · Innovation and Knowledge Management · Product Development and Customization · Technology Assessment and Management

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